Short-Term Health Insurance: Coverage, Costs, and Who It’s for

Short-term health insurance is a type of insurance that can provide coverage for up to four months.

This may be useful when you’re between jobs, missed open enrollment for the health insurance marketplace, or are waiting for Medicare to begin.^[1] If you’re generally healthy, a short-term health plan may cost less than some alternatives, making it an option during an in-between period.

But short-term health insurance plans aren’t for everyone. They don’t fall under Affordable Care Act (ACA) rules, so they don’t cover pre-existing conditions. And they may leave out other crucial coverages, like prescription medications.

Here’s what you should know about short-term health insurance, how much it costs, and whether it’s a good option for you.

What is short-term health insurance?

Short-term health insurance — also known as short-term, limited-duration insurance (STLDI) — is a health insurance plan that covers unexpected illnesses or injuries when you’re outside of a traditional plan window.

For instance, if you missed ACA or Medicare open enrollment, or don’t qualify for premium subsidies through the ACA marketplace, these plans can serve as a lower-cost alternative.

You can’t buy a short-term health plan through the ACA marketplace. Instead, private insurance companies sell them, including many well-known insurers like UnitedHealthcare and Blue Cross/Blue Shield in some states.

These plans don’t adhere to ACA regulations and don’t provide the same consumer protections as other health insurance plans. Since short-term health insurance plans don’t cover pre-existing conditions, insurance companies can deny you coverage based on your health history. A short-term plan may also not cover essential care, like preventive, newborn, maternity, and mental healthcare, or prescription drugs.

How short-term health insurance plans work

If you’re healthy, it can be easy to get a short-term health insurance plan. You can apply at any time of year and may be able to start coverage as soon as the next day.

But these plans are medically underwritten — meaning an insurer can refuse to cover you or charge a higher premium due to a pre-existing condition.^[2]

Generally, STLDI plans work much like other health insurance policies:

• You’ll pay a monthly premium for your policy.

• When you need care, you’ll have to meet a deductible, which can be much higher than deductibles for traditional health insurance plans.

• You’ll have a co-insurance amount and a per-visit copay.

• If you need care for something your plan doesn’t cover, like dental or vision care, you’ll have to pay those expenses out of pocket.

In 2024, the federal government changed rules around these plans to significantly limit their contract durations. Under the new regulations, policies can’t be longer than three months, with renewals of no longer than one month.

States can also regulate short-term health insurance plans. Some have additional restrictions on short-term health insurance. Others have banned the sale of the plans entirely.

What short-term health insurance covers

Most short-term health plans cover doctor visits, emergency care, and urgent care. Some may provide coverage for preventive care and prescriptions.

These plans may have higher deductibles than ACA-compliant health insurance. They might have lifetime or annual dollar limits on coverage, such as $2 million or less. And short-term health plan provider networks can be limited, which could force you to go out of network if you need a specialist.

Short-term health insurance plans often exclude certain services, so it’s important to read each plan’s coverage terms before you buy. If you’re used to employer-sponsored health insurance plans that provide comprehensive coverage, a short-term health plan could surprise you with an unexpected bill.

Here are some services that short-term health insurance plans typically cover, and some they may exclude:

Service	Typically Covered?
Emergency services	Yes
Hospital stays	Yes
Doctor appointments	Yes
Mental health	Yes, for most plans
Substance abuse	No
Prescription drugs	No
Maternity	No

Keep in mind that even when a short-term health insurance plan provides coverage for a certain service, the amount it’ll pay could be limited.

How much does short-term health insurance cost?

Short-term health insurance plans tend to be cheaper than marketplace plans, but premiums can vary widely based on several factors. To get an idea of how much a plan might cost, we sought quotes from some issuers of short-term policies. We requested sample quotes for a 22-year-old non-tobacco-using male living in North Carolina.

The table below shows estimated quotes, deductibles, and plan limits for each insurer’s most basic offering.

Insurance Company	Deductible	Plan Limit	Monthly Cost
United Healthcare	$5,000	$500,000	$89
Allstate Health Solutions	$25,000	$250,000	$52
Pivot Health	$10,000	$100,000	$45

Just as monthly premiums, deductibles, and plan limits vary widely, so do out-of-pocket maximums. In our test set, maximums ranged from $10,000 to $32,500. We also had difficulty finding insurers that would provide online quotes, and most asked for personal information before providing a quote.

If you shop for short-term health insurance, you should also consider co-insurance tiers, which determine the percentage of healthcare costs you pay until the insurer starts paying 100% of the cost.

Because health insurance costs can vary widely, compare short-term insurance premiums and deductibles to COBRA and ACA plans. This will put the cost of short-term plans into context.

Factors that affect the cost of short-term health insurance

Like any health insurance plan, several factors affect the cost of a short-term health insurance policy:

• Deductibles, co-insurance, and copays: Generally, a higher deductible results in a lower monthly premium. Short-term health insurance companies don’t have to cap patients’ out-of-pocket costs, so they’re able to offer very high deductibles.

• Dollar limits: These plans often have dollar-amount coverage limits. By lowering the amount they ultimately pay out for claims, short-term health insurance plans can offer lower premiums.

• Age and gender rating: Short-term health insurance plans don’t have to follow ACA limits on gender- and age-based cost variations.

• Your health: Short-term health insurance plans don’t have to abide by the ACA’s pre-existing conditions rules. That means they can deny you coverage or charge you a much higher premium if you have a pre-existing condition.

• Your state: States can place requirements on short-term insurance plans that can affect their overall cost.

• Add-on coverages: Some plans allow you to expand your coverage through add-ons. For example, you might be able to add dental or mental healthcare for an additional cost.

Pros and cons of short-term coverage

The low premiums and flexibility of short-term health insurance plans can be financially helpful. But eligibility concerns, limited coverages, and potentially high out-of-pocket costs can be drawbacks. It’s important to weigh the advantages and disadvantages of this type of insurance before buying a policy.

Short-term health insurance can be a money-saving way to get basic coverage if you’re in generally good health. But if you have chronic health conditions or need more robust coverage, you should consider other options.

Which states allow short-term health insurance plans?

Most states allow you to buy a short-term health insurance policy. But 15 states ban or effectively block them. Some state regulations do this to protect customers from high costs, low coverage, and other shortfalls of short-term health insurance plans.

The following table highlights states that have banned these policies outright or restricted them in ways that make it difficult for insurers to sell them profitably in the state.

State	Ban or Block?	State Rules
California	Ban	Since Jan. 1, 2019, insurance companies can’t sell STLD policies to California residents.
Colorado	Block	Plans are limited to six months, which has prevented sales of these plans.
Connecticut	Block	State law requires short-term insurance plans to include pre-existing conditions coverage just as other health insurance plans do.
Delaware	Block	Plans are limited to three months with no renewals and must spend at least 60% of premiums on medical care.
Hawaii	Block	The state prohibits the sale of short-term plans to anyone who’s eligible for an ACA plan.
Illinois	Ban	As of Jan. 1, 2025, insurers can’t sell STLD policies to Illinois residents.
Maine	Block	Restrictions — including required pre-existing coverage, in-person sales, and clear cost comparisons for consumers — resulted in no plans available for sale.
Massachusetts	Block	Requires short-term health plan sellers to disclose plan limitations and provide a comparison of plan costs vs. an ACA plan, only sell policies in person, and determine if an applicant would qualify for an ACA policy instead.
Maryland	Block	Plans are limited to three months with no renewals.
New Jersey	Block	Requires all health insurance sold in the state to be standard health benefit plans. Short-term plans don’t meet these standards.
New Mexico	Block	Plans are limited to three months with no renewals.
New York	Ban	Doesn’t permit short-term plans of any duration. Requires all health insurance policies to be renewable and comprehensive.
Rhode Island	Block	Requires all health insurance sold in the state to meet minimum essential coverage requirements. This effectively excludes short-term plans because of their limited coverage.
Vermont	Block	Plans are limited to three months with no renewals, among other limitations.
Washington	Block	Allows short-term plans of up to three months without renewal but requires them to provide the same coverages as standard plans, including pre-existing conditions coverage.
Washington, D.C.	Block	Plans are limited to three months with no renewals and required to provide the same coverages as standard insurers.

Should you consider a short-term health insurance policy?

Short-term health insurance policies aren’t for everyone. These policies are a cheap alternative compared to ACA plans, but they provide very limited coverage. They’re best for protecting you against emergencies, but they’re not an alternative for long-term coverage.

Here are some situations in which you might consider short-term health insurance plans:

• Between jobs: If you’re between jobs and expect to have employer-sponsored health coverage in the near future, short-term health insurance can help bridge the gap.

• Missed open enrollment: Open enrollment for the ACA marketplace lasts from Nov. 1 to Jan. 1.^[3] If you miss it, short-term health insurance provides temporary coverage.

• Waiting for Medicare: People typically qualify for Medicare at age 65. If you aren’t there yet but no longer have employer-sponsored health insurance, a short-term plan can provide temporary coverage.

• Loss of group plan: If you’ve lost your job or lost health coverage for other reasons and can’t qualify for special enrollment, these plans can be a temporary solution.

Remember that these plans aren’t a long-term solution, and limitations often apply. For chronic-care needs or pregnancy care, you may need an ACA plan or Medicaid.

How to buy a short-term health insurance plan

Short-term health insurance plans aren’t available through the ACA marketplace, so you’ll have to look elsewhere. You can buy a plan directly with an insurer or a licensed broker.

Follow these steps to buy a plan:

• 

  1. Research your state’s rules

  Some states ban or block short-term plans, so check your state’s regulations.

• 

  2. Understand your options

  Remember that short-term health insurance often excludes certain healthcare services. Be sure you understand what your plan covers — and what it won’t.

• 

  3. Gather information

  Ensure you have all necessary documents, including your Social Security number, recent medical history, a payment method, a list of preferred doctors, and a list of prescription medications you use.

• 

  4. Compare details

  Be sure you understand your policy’s deductible, co-insurance, copays, and out-of-pocket maximum. You should also be aware of your plan’s annual limits for claims payouts.

• 

  5. Complete a health questionnaire

  A short-term health insurer may ask you to complete a health questionnaire with information about your medical history and any pre-existing health conditions.

• 

  6. Pay your first premium

  You must pay your first premium to start coverage.

• 

  7. Set a cancellation reminder

  Since your plan may only last three or four months, it’s a good idea to set a reminder for its termination date.

• 

  8. Start looking for a longer-term alternative

  These plans aren’t a long-term solution, so look for something that’ll work after your temporary coverage ends.

Short-term health insurance alternatives

Short-term health insurance isn’t the only option when you need temporary coverage. Because these plans aren’t for everyone, it’s always a good idea to consider the alternatives. Other options may provide better coverage and reduce your out-of-pocket costs.

Consider these alternatives:

• ACA plans: If you’re not eligible for other types of health insurance (employer-sponsored, Medicare, Medicaid), you can buy health insurance through the Affordable Care Act’s open marketplace at healthcare.gov. All plans cover essential benefits like prescription drugs, hospitalization, emergency services, and more. Plan costs vary based on your income and the type of plan you choose. Some people qualify for subsidies to lower their costs.

• COBRA: Short for the Consolidated Omnibus Budget Reconciliation Act, COBRA allows you to extend an employer-sponsored health insurance plan after you leave a job. Generally, you’ll have 60 days to elect to take COBRA, and the benefits expire in 18 to 36 months. Your plan and coverage stay the same as when you were employed, but you’ll pay 100% of the premium plus an administrative fee.

• Children’s Health Insurance Program (CHIP): States offer this low-cost health coverage program to children and pregnant women. Rules vary by state.

Short-term health insurance FAQs